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Breaking into the summer holiday lull, Austrian politics has gotten into a lather over a far-right populist’s call for a referendum on whether a mainly German-speaking region of northern Italy should rejoin Austria.

from Global Investing:

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The Austrian government debt agency’s two-year old foray into subprime investments has turned into a political hot potato and sparked an increasingly heated debate between the Social Democrats and conservatives, caught in an uneasy but coalition government without viable alternative.

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A top adviser to Israeli Prime Minister Benjamin Netanyahu used an odd turn of phrase to explain what some see as a puzzling demand put to Palestinians by the right-wing leader as a condition for any any Israeli agreement to establishing a state in the occupied West Bank.

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Peru’s Congress hopes to calm protests over President Alan Garcia’s plans to open up the country’s Amazon region to oil and logging by multinational companies but the conflict is far from being resolved.

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Germany’s 37-year-old economy minister, Karl-Theodor zu Guttenberg, could become a liability for Chancellor Angela Merkel in September’s election thanks to his open criticism of the government’s 11th-hour rescue of carmaker Opel.